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AFTER MARKET UPDATE - TUESDAY, OCTOBER 8TH, 2013
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Indices NYSE Nasdaq
DOW  -159.71 14,776.53 -1.07% Volume 732,789,400 +23% Volume 2,025,422,840 +43%
NASDAQ -75.55 3,694.83 -2.00% Advancers 566 18% Advancers 505 19%
S&P 500 -20.67 1,655.45 -1.23% Decliners 2,421 78% Decliners 2,040 78%
Russell 2000 -18.53 1,047.26 -1.74% 52 Wk Highs 43   52 Wk Highs 52  
S&P 600 -8.29 593.30 -1.38% 52 Wk Lows 61   52 Wk Lows 40  

Major Averages Sink on Higher Volume as Correction Worsens

The major averages ended near their lows of the session as the Dow Jones Industrial Average, S&P 500 Index, and the Nasdaq Composite Index fell. The market's "correction" turned uglier as the volume totals swelled on the NYSE and on the Nasdaq exchange versus the prior session's volume totals, indicating heavier selling conviction from the institutional crowd. Breadth was negative as decliners led advancers by a 4-1 margin on the NYSE and on the Nasdaq exchange. Leadership waned as there were 12 high-ranked companies from the CANSLIM.net Leaders List that made new 52-week highs and appeared on the CANSLIM.net BreakOuts Page, down from 17 stocks on the prior session. Healthy leadership is critical to any sustained rally. The list of stocks hitting new 52-week lows outnumbered new highs on the NYSE, meanwhile new highs still held a lead over new lows on the Nasdaq exchange. There were losses for all 21 high-ranked companies currently included on the Featured Stocks Page, many of these individual issues suffering much larger percentage losses than seen by the broader market indices.

 

The major averages declined to their lowest levels in a month as the government shutdown entered its 8th day and as lawmakers failed to make progress in reaching a debt limit agreement. Most sectors on the S&P ended lower, led by declines in telecom stocks including Verizon Communications Inc (VZ -1.51%). The J.C. Penny Co (JCP +0.78%) edged higher after the retailer reported stronger-than-expected sales trends and an improvement in liquidity. In other news, Jamba Juice (JMBA -18.8%) fell after the company reduced their current-quarter sales forecasts and warned of a persisting difficult environment.

Turning to fixed income markets, Treasuries were modestly lower along the curve. The benchmark 10-year note was down 3/32 to yield 2.64% and the 30-year bond fell 1/32 to yield 3.70%.

The market (M criteria) clearly signaled that the major averages are in a "correction" based on the latest technical damage.  Individual holdings should be closely monitored for any worrisome technical sell signals. This is precisely how the fact-based system helps investors avoid serious setbacks and raise cash levels during market downdrafts. Historic studies suggest that no new buying efforts should be made during market corrections. 

The CANSLIM.net Featured Stocks Page - shows the most action-worthy candidates' latest notes and links to additional resources including detailed analysis with data-packed graphs which are annotated by a Certified expert.  The Premium Member Homepage - includes "dynamic archives" to all prior pay reports published. Watch for an announcement via email concerning the next WEBCAST.

PICTURED: The S&P 500 Index slumped further below its 50-day moving average (DMA) line violated an upward trendline connecting its Dec '12 and Aug '13 lows. After trading up as much as +21.2% for the year-to-date at its peak on September 19th it is now -4.82% off its all-time high.


Kenneth J. Gruneisen started out as a licensed stockbroker in August 1987, a couple of months prior to the historic stock market crash that took the Dow Jones Industrial Average down -22.6% in a single day. He has published daily fact-based fundamental and technical analysis on high-ranked stocks online for two decades. Through FACTBASEDINVESTING.COM, Kenneth provides educational articles, news, market commentary, and other information regarding proven investment systems that work in good times and bad.

Comments contained in the body of this report are technical opinions only and are not necessarily those of Gruneisen Growth Corp. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities.


Financial, Retail, Tech, and Commodity-Linked Groups Ended Lower

The Retail Index ($RLX -1.97%) was a negative influence on the major averages and the financial indexes including the Broker/Dealer Index ($XBD -1.63%) and the Bank Index ($BKX -1.10%) also dragged the broader market lower.  The tech sector saw large losses from the Biotechnology Index ($BTK -4.55%) and the Internet Index ($IIX -3.21%) while the Networking Index ($NWX -2.52%) and the Semiconductor Index ($SOX -1.67%) also slumped. The Gold & Silver Index ($XAU -3.10%) was smacked with a large loss while the Healthcare Index ($HMO -1.31%) suffered a smaller setback.  Weakness in energy-related shares rounded out fully negative session as the Oil Services Index ($OSX -1.17%) and the Integrated Oil Index ($XOI -1.13%) fell.

  Charts courtesy www.stockcharts.com

PICTURED: The Broker/Dealer Index ($XBD -1.63%) is slumping below its 50-day moving average (DMA) line toward prior lows. Deterioration in the financial indices does not bode well for the broader market outlook because the financial indices have been a reliable "leading indicator". The major averages have been prone to their most severe downdrafts when financial stocks are weak. 


Industry Index Symbol Close Change % Change YTD % Change
Oil Services $OSX  272.61 -3.24 -1.17% +23.82%
Healthcare $HMO  3,473.87 -46.11 -1.31% +38.17%
Integrated Oil $XOI  1,385.80 -15.86 -1.13% +11.59%
Semiconductor $SOX  486.82 -8.27 -1.67% +26.76%
Networking $NWX  297.39 -7.70 -2.52% +31.27%
Internet $IIX  404.92 -13.44 -3.21% +23.83%
Broker/Dealer $XBD  132.16 -2.19 -1.63% +40.10%
Retail $RLX  826.48 -16.57 -1.97% +26.55%
Gold & Silver $XAU  88.94 -2.85 -3.10% -46.29%
Bank $BKX  61.20 -0.68 -1.10% +19.34%
Biotech $BTK  2,054.51 -97.93 -4.55% +32.80%


Faring Better Than Others While Testing 50-Day Average Line

Marlin Business Services (MRLN -$0.02 or -0.08% to $23.60) has been making a stand near its 50-day moving average (DMA) line. Gains lacked great volume conviction since recently paying a $2.00 per share Special Dividend. More damaging losses would raise concerns and trigger technical sell signals. It was last shown in this FSU section on 9/09/13 under the headline, "Following Technical Breakout Broader Market Confirms Rally", after highlighted in yellow with an annotated daily graph showing the new pivot point cited based on its May '13 highs plus 10 cents in the earlier mid-day report (read here) while noted - "Technically, it broke out with a volume-driven gain on 9/05/13."

Many other high-ranked leaders have fared worse and suffered bad technical damage as the broader market (M criteria) has technically shifted into a correction, arguing for investors to adopt a defensive stance and limit losses - see more in today's Market Commentary section.  Remember, 3 out of 4 stocks tend to move in the same direction of the major averages. MRLN hails from the Commercial Services - Leasing group which now has a 34 Group Relative Strength Rating, not a good sign concerning the L criteria. Return-On-Equity at 7% is also below the 17% minimum guideline.  It is now trading -10% off its 52-week high, facing a little resistance due to overhead supply.

With only 9.29 million shares (S criteria) in the publicly traded float it may be particularly volatile in the event of any institutional buying or selling. The number of top-rated funds owning its shares rose from 111 in Mar '12 to 143 in Jun '13, a reassuring sign concerning the I criteria. Its current Up/Down Volume Ratio of 1.5 is an unbiased indication that its shares have been under accumulation over the past 50 days.


Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.

***Last / Change / Volume data in this table is the closing quote data***
Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
AVG - NYSE
A V G Technologies N.V.
INTERNET - Internet Software and Services  
$22.30 -1.25
-5.31%

$23.55

1,820,355
194.30% of 50 DAV
50 DAV is 936,900
$26.56
-16.03%
9/13/2013 $23.06 PP = $23.88
MB = $25.07
Most Recent Note - 10/8/2013 12:53:50 PM
G - Color code is changed to green while slumping below prior highs in the $23 area and violating its 50 DMA line triggering technical sell signals. Only a prompt rebound above that important short-term average would help its outlook.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/13/2013. Click here.

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BITA - NYSE
Bitauto Hldgs Ltd Ads
INTERNET - Internet Information Providers  
$19.13 -2.60
-11.97%

$22.67

2,264,334
427.07% of 50 DAV
50 DAV is 530,200
$22.37
-14.48%
9/24/2013 $16.40 PP = $17.31
MB = $18.18
Most Recent Note - 10/8/2013 12:45:07 PM
G - Hit another new 52-week high today and then reversed into the red. Prior highs in the $18 area define define initial support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 10/2/2013. Click here.

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CELG - NASDAQ
Celgene Corp
DRUGS - Drug Manufacturers - Major  
$148.53 -5.34
-3.47%

$155.24

3,869,994
155.90% of 50 DAV
50 DAV is 2,482,400
$157.95
-5.96%
9/12/2013 $149.50 PP = $150.02
MB = $157.52
Most Recent Note - 10/4/2013 11:32:47 PM
Y - Rallied for a best-ever close and hit another new 52-week high today. It is trading near its "max buy" level. Its 50 DMA line ($144.88 now) defines near-term support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/20/2013. Click here.

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EGBN - NASDAQ
Eagle Bancorp Inc
BANKING - Regional - Mid-Atlantic Banks  
$27.18 -0.46
-1.66%

$27.69

66,952
96.75% of 50 DAV
50 DAV is 69,200
$28.78
-5.56%
9/16/2013 $27.48 PP = $27.77
MB = $29.16
Most Recent Note - 10/8/2013 5:17:39 PM
Y - Consolidating above prior highs and above its 50 DMA line, still holding its ground stubbornly after a recent spurt of volume-driven gains.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/16/2013. Click here.

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FLT - NYSE
Fleetcor Technologies
DIVERSIFIED SERVICES - Business/Management Services  
$104.57 -7.24
-6.48%

$112.25

1,362,514
205.04% of 50 DAV
50 DAV is 664,500
$113.68
-8.01%
8/19/2013 $99.01 PP = $100.97
MB = $106.02
Most Recent Note - 10/8/2013 5:02:19 PM
G - Down considerably today with above average volume, sinking quickly to its 50 DMA line. A violation may trigger a more worrisome technical sell signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 10/7/2013. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
GNRC - NYSE
Generac Hldgs Inc
CONSUMER DURABLES - Electronic Equipment  
$40.26 -1.48
-3.55%

$42.06

1,382,394
175.05% of 50 DAV
50 DAV is 789,700
$44.30
-9.12%
9/12/2013 $41.40 PP = $43.27
MB = $45.43
Most Recent Note - 10/8/2013 5:04:44 PM
G - Color code is changed to green after a considerable loss today on above average volume violated its 50 DMA line triggering a technical sell signal. Prior lows in $39 area define important near-term support. Disciplined investors limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/23/2013. Click here.

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JAZZ - NASDAQ
Jazz Pharmaceuticals Plc
DRUGS - Biotechnology  
$83.78 -5.19
-5.83%

$88.82

2,240,134
332.96% of 50 DAV
50 DAV is 672,800
$93.84
-10.72%
9/30/2013 $93.20 PP = $89.10
MB = $93.56
Most Recent Note - 10/8/2013 12:09:58 PM
G- Violated its 50 DMA line with a damaging loss on heavy volume today triggering a technical sell signal. Color code is changed to green. Disciplined investors limit losses if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/30/2013. Click here.

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KORS - NYSE
Michael Kors Hldgs Ltd
RETAIL - Apparel Stores  
$70.92 -3.41
-4.59%

$74.86

3,598,019
107.36% of 50 DAV
50 DAV is 3,351,400
$78.62
-9.80%
8/6/2013 $69.66 PP = $66.28
MB = $69.59
Most Recent Note - 10/8/2013 5:15:40 PM
G - Violated its 50 DMA line with a damaging loss today triggering a technical sell signal. Prior highs in the $66 area define the next chart support area.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/27/2013. Click here.

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LOPE - NASDAQ
Grand Canyon Education
DIVERSIFIED SERVICES - Education and; Training Services  
$39.05 -0.39
-0.99%

$39.74

301,264
81.29% of 50 DAV
50 DAV is 370,600
$41.33
-5.52%
6/19/2013 $31.47 PP = $34.17
MB = $35.88
Most Recent Note - 10/3/2013 5:53:22 PM
G - Pulling back from new all-time high with small losses on light or average volume. Fundamental concerns remain while technical action has been reassuring.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/12/2013. Click here.

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MRLN - NASDAQ
Marlin Business Services
DIVERSIFIED SERVICES - Rental and Leasing Services  
$23.60 -0.02
-0.08%

$23.72

24,913
69.59% of 50 DAV
50 DAV is 35,800
$26.96
-12.46%
9/9/2013 $23.75 PP = $24.03
MB = $25.23
Most Recent Note - 10/7/2013 6:30:15 PM
G - Finished near its 50 DMA line and near the session low with a big loss on average volume today. Gains lacked great volume conviction since recently paying a $2.00 per share Special Dividend.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/9/2013. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
PCLN - NASDAQ
Priceline.Com Inc
INTERNET - Internet Software and Services  
$998.13 -43.55
-4.18%

$1,044.63

1,369,407
228.12% of 50 DAV
50 DAV is 600,300
$1,074.89
-7.14%
9/13/2013 $966.82 PP = $995.08
MB = $1,044.83
Most Recent Note - 10/8/2013 12:16:43 PM
Y - Pulling back toward prior highs near $995 defining initial support to watch. Disciplined investors limit losses by selling if any stock falls more than -7% from their purchase price.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/19/2013. Click here.

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PRAA - NASDAQ
Portfolio Recovery Assoc
DIVERSIFIED SERVICES - Business/Management Services  
$56.73 -1.77
-3.03%

$58.79

556,005
108.13% of 50 DAV
50 DAV is 514,200
$61.60
-7.91%
7/31/2013 $51.43 PP = $54.72
MB = $57.46
Most Recent Note - 10/7/2013 6:33:42 PM
G - Down today for a 4th consecutive small loss on light volume. Pulling back from its 52-week high after gains on light volume, wedging higher and getting extended from its prior base.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/26/2013. Click here.

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PRLB - NYSE
Proto Labs Inc
MANUFACTURING - Small Tools and Accessories  
$72.98 -4.38
-5.66%

$78.61

528,592
127.34% of 50 DAV
50 DAV is 415,100
$80.91
-9.80%
7/29/2013 $64.86 PP = $67.50
MB = $70.88
Most Recent Note - 10/8/2013 5:08:31 PM
G - Pulled back considerably on above average volume today testing important support at its 50 DMA line.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/25/2013. Click here.

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SFUN - NYSE
Soufun Hldgs Ltd Ads A
INTERNET - Internet Information Providers  
$44.62 -4.36
-8.90%

$49.96

2,389,751
204.39% of 50 DAV
50 DAV is 1,169,200
$53.77
-17.02%
7/16/2013 $29.54 PP = $27.90
MB = $29.30
Most Recent Note - 10/8/2013 12:47:12 PM
G - Pulling back near prior lows and its 50 DMA line, important near-term support to watch on pullbacks. Violations may trigger technical sell signals.
>>> The latest Featured Stock Update with an annotated graph appeared on 10/1/2013. Click here.

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SSNC - NASDAQ
S S & C Technologies
COMPUTER SOFTWARE and SERVICES - Application Software  
$34.93 -1.96
-5.31%

$37.11

846,230
197.44% of 50 DAV
50 DAV is 428,600
$39.94
-12.54%
9/5/2013 $36.01 PP = $38.90
MB = $40.85
Most Recent Note - 10/8/2013 12:48:50 PM
G - Color code is changed to green while deteriorating and violating its 50 DMA line with today's loss on higher volume triggering a technical sell signal. Completed a Secondary Offering on 9/20/13 while perched at all-time highs.
>>> The latest Featured Stock Update with an annotated graph appeared on 10/4/2013. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
SSYS - NASDAQ
Stratasys Ltd
COMPUTER HARDWARE - Computer Peripherals  
$93.92 -3.47
-3.56%

$98.70

1,262,217
111.43% of 50 DAV
50 DAV is 1,132,700
$113.49
-17.24%
7/8/2013 $91.44 PP = $95.00
MB = $99.75
Most Recent Note - 10/8/2013 12:50:01 PM
G - Slumping below its 50 DMA line and approaching prior lows defining the next near-term support. Completed a new Public Offering on 9/13/13.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/10/2013. Click here.

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STMP - NASDAQ
Stamps.Com Inc
INTERNET - Internet Software and Services  
$40.29 -2.85
-6.61%

$43.65

175,787
147.84% of 50 DAV
50 DAV is 118,900
$46.80
-13.90%
9/24/2013 $45.54 PP = $46.57
MB = $48.90
Most Recent Note - 10/8/2013 12:51:19 PM
G - Color code is changed to green while violating its 50 DMA line today triggering a worrisome technical sell signal.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/24/2013. Click here.

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TBBK - NASDAQ
Bancorp Inc
BANKING - Regional - Mid-Atlantic Banks  
$17.44 -0.05
-0.29%

$17.77

116,116
65.49% of 50 DAV
50 DAV is 177,300
$18.61
-6.29%
9/4/2013 $16.26 PP = $16.79
MB = $17.63
Most Recent Note - 10/8/2013 12:52:00 PM
Y - Consolidating above prior highs and its 50 DMA line defining important support to watch on pullbacks.
>>> The latest Featured Stock Update with an annotated graph appeared on 10/3/2013. Click here.

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TNGO - NASDAQ
Tangoe Inc
COMPUTER SOFTWARE and SERVICES - Technical and System Software  
$23.02 -0.64
-2.70%

$23.99

819,210
144.76% of 50 DAV
50 DAV is 565,900
$24.60
-6.41%
9/12/2013 $21.30 PP = $23.15
MB = $24.31
Most Recent Note - 10/8/2013 5:19:55 PM
Y - Down again today with above average volume, encountering distributional pressure. Convincing volume-driven gains above its pivot point cited based on its May 2012 high plus 10 cents may signal the beginning of a substantial leg higher.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/17/2013. Click here.

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VRX - NYSE
Valeant Pharmaceuticals
DRUGS - Drug Manufacturers - Other  
$105.92 -4.40
-3.99%

$110.52

1,727,748
143.00% of 50 DAV
50 DAV is 1,208,200
$113.79
-6.92%
9/11/2013 $100.26 PP = $105.50
MB = $110.78
Most Recent Note - 10/8/2013 5:43:42 PM
Y- Color code is changed to yellow after ending near the session low with a large loss with above average volume, slumping toward prior highs defining important support in the $105 area.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/11/2013. Click here.

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Symbol/Exchange
Company Name
Industry Group
PRICE CHANGE
(%Change)
Day High Volume
(% DAV)
(% 50 day avg vol)
52 Wk Hi
% From Hi
Featured
Date
Price
Featured
Pivot Featured
Max Buy
YNDX - NASDAQ
Yandex N V Class A
INTERNET - Internet Information Providers  
$35.54 -1.90
-5.07%

$38.10

4,596,058
206.34% of 50 DAV
50 DAV is 2,227,400
$39.44
-9.89%
9/5/2013 $34.24 PP = $34.79
MB = $36.53
Most Recent Note - 10/8/2013 5:09:45 PM
G - Down considerably today with above average volume, sinking to prior highs in the $34 area and its 50 DMA line defining important support to watch.
>>> The latest Featured Stock Update with an annotated graph appeared on 9/18/2013. Click here.

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